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This paper describes an application of a FACTS supplementary controller for damping of inter area oscillations in power systems. A fuzzy logic controller is designed to regulate a thyristor controlled series capacitor (TCSC) in a multimachine environment to produce additional damping in the system. Simultaneous application of the excitation controller and proposed controller is also investigated. Simulation studies have been done with different types of disturbances and the results are shown to be consistent with the expected performance of the supplementary controller.